[SMM Daily Brief on Coking Coal and Coke] 20260727

[SMM Coke & Coking Coal Daily Review]

Coking Coal Market:

Linfen low-sulphur coking coal offer was at 2,020 yuan/mt.

Coking coal side, mine shutdowns remained widespread, keeping overall coking coal supply relatively tight. The market wait-and-see sentiment was strong, new orders for mines remained low, online auctions were sluggish, and transaction prices for some high-priced coal varieties continued to pull back slightly. Traders showed strong willingness to sell, and coking coal prices were likely to remain weak in the near term.

Coke Market:

The nationwide average price for quasi-first-grade metallurgical coke dry quenching was 2,035 yuan/mt.

In news, some steel mills lowered wet-quenched coke prices by 50 yuan/mt and dry-quenched coke by 55 yuan/mt, effective from midnight on July 29, 2026. Supply side, some coke producers faced increased shipment pressures, coke inventories piled up at plants, and both coking coal and coke prices pulled back simultaneously; coke producers' profits did not fall significantly, and operations were stable. Demand side, market demand was weak, steel mill profits remained inverted, blast furnace production cuts and maintenance intensified, coke demand was under pressure and pulled back, and steel mills continued to control coke deliveries. In summary, coke supply was ample, coupled with weakening cost support, market bearish sentiment was strong. The coke market was likely to continue to run weak in the near term, and the second round of price cuts was about to be implemented. [SMM Steel]